Current Federal Debt and Deficit
Every month, the U.S. Treasury releases data on the federal budget, including the current deficit or surplus. The following reflects budget data for February, the fifth month of fiscal year (FY) 2026.
Current Federal Deficit
$308B
Federal Budget Deficit for February FY26
$307B
Federal Budget Deficit for February FY25
The federal government reported a deficit of $308 billion in the month of February FY26, an increase of less than $1 billion from the $307 billion deficit recorded in February FY25. However, February 1 and March 1 fell on weekends in both FY25 and FY26, causing certain payments to be shifted into the respective previous months of those years. Adjusting for those timing shifts, the February FY26 deficit would have been $7 billion more than the same month in the previous year.
Spending in February FY26 was $17 billion higher than in February last year, though, adjusting for the timing shifts, outlays were up $24 billion compared to the same month in FY25. Categories that saw the largest increases were Social Security ($10 billion more than February FY25), national defense spending ($6 billion), and net interest costs ($4 billion). Partially offsetting those and other spending increases were a $4 billion decrease in spending by the Department of Homeland Security and a $3 billion decrease in record outlays by the Federal Deposit Insurance Corporation. Receipts were up by $17 billion in February FY26 compared to the previous year: customs duties collections rose by $19 billion, mainly due to the increase in tariffs, and payroll tax receipts increased by $10 billion. Offsetting those revenue gains was a $13 billion decline in corporate tax collections, driven by refunds exceeding gross payments in February FY26.
Cumulative Federal Deficit
$1.0T
Cumulative FY26 Deficit
$1.1T
Cumulative FY25 Deficit (through February FY25)
Five months through FY26, the deficit was $142 billion below last year’s level. However, the cumulative deficits of FY25 and FY26 have been affected by the aforementioned March 1 timing shifts. Without those effects, the cumulative deficit for FY26 would have been $144 billion less than last year’s adjusted total.
For FY26, total outlays were $3.1 trillion, $63 billion higher than the same period in the previous year. Adjusting for those timing shifts, spending was $60 billion above the same period last year. That increase was driven mainly by three categories: Social Security spending was up by $48 billion, stemming from cost-of-living adjustments and some retroactive payments; Medicare outlays increased by $36 billion; and net interest rose by $28 billion. Partially offsetting those and other increases was an $18 billion decrease in spending related to the Department of Agriculture.
Receipts are up by $205 billion in FY26 compared to the previous year: individual income tax receipts have increased by $98 billion, and customs duties collections rose by $109 billion, largely due to the increase in tariffs.
National Debt
$31.0T
Debt Held by the Public at the end of February FY26
$28.8T
Debt Held by the Public at the end of February FY25
The FY26 deficit through the first four months is the third-largest in the last six years. The debt held by the public is approaching its post-World War II high as a percentage of gross domestic product and is rising rapidly, driven by aging demographics, rising healthcare costs, inadequate revenues, and skyrocketing interest costs. The good news is that there are many solutions available to improve our fiscal outlook and put our nation on a stronger path.